BILL NUMBER: AB 1848	CHAPTERED  08/09/00

	CHAPTER   210
	FILED WITH SECRETARY OF STATE   AUGUST 9, 2000
	APPROVED BY GOVERNOR   AUGUST 8, 2000
	PASSED THE ASSEMBLY   AUGUST 7, 2000
	PASSED THE SENATE   JULY 6, 2000
	AMENDED IN SENATE   JUNE 27, 2000
	AMENDED IN ASSEMBLY   MARCH 23, 2000

INTRODUCED BY   Assembly Member Maddox

                        FEBRUARY 7, 2000

   An act to add Section 11580.17 to the Insurance Code, relating to
insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1848, Maddox.  Insurance.
   Existing law makes no provision for an insurer to inspect a motor
vehicle prior to the issuance of insurance coverage for the vehicle.

   This bill would  provide that the department shall not prohibit an
insurer from inspecting a motor vehicle prior to issuing collision
or comprehensive coverage for the vehicle.  The bill would require an
insurer conducting these inspections to inspect every motor vehicle
for which coverage is requested except new motor vehicles and motor
vehicles previously insured.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 11580.17 is added to the Insurance Code, to
read:
   11580.17.  The department shall not prohibit an insurer from
electing to inspect physically a motor vehicle for purposes of
issuing a policy for collision or comprehensive coverage.  The
inspection of the motor vehicle shall be at no cost to the insured.
The information ascertained from that inspection may only be used to
determine the extent of insurability for collision or comprehensive
coverage for the motor vehicle.  If an insurer elects to conduct an
inspection prior to offering comprehensive and collision insurance
pursuant to this section, the insurer shall inspect every motor
vehicle for which coverage is requested if the vehicle was not
previously insured under a policy of comprehensive and collision
coverage.  An insurer may exempt from this requirement new motor
vehicles if a copy of the sales contract is delivered to the insurer
within five business days of the purchase of the new motor vehicle.
The inspection shall be done by the insurer or its agent, and shall
be performed not more than 20 miles from the address where the
vehicle is insured, and during normal business hours.
